Thailand's SEC Embraces Crypto: Unveils Friendly Rules in 2024

• Thailand's SEC Embracing Crypto-Friendly Regulations
• Updated Framework for Digital Assets
• Removal of Investment Limit
• Rules for Custodial Wallet Providers
• Monitoring Digital Asset Businesses
• Binance's Influence on Thailand's Crypto Growth

Thailand's SEC Embracing Crypto-Friendly Regulations

The Thailand Securities and Exchange Commission (SEC) is progressively adopting crypto-friendly regulations, as evidenced by an updated framework released earlier this month. The Thai SEC regulates cryptocurrencies under the Digital Asset Businesses Decree, specifically in areas such as sales, trading, and initial coin offerings (ICOs). To legally operate, digital asset businesses in Thailand are obligated to acquire licenses and adhere to the rules declared by the SEC as stated in this decree.

Updated Framework for Digital Assets

The SEC's recent update eradicates the investment limits for retail investors in asset-backed tokens, establishes new regulations for custodians, and assigns the agency a more extensive role in overseeing digital asset business.

Removal of Investment Limit

Significantly, the removal of the investment limit for retail investors in digital tokens backed by real estate or infrastructure this month represents a considerable change. The previous regulations restricted retail investors to 300,000 baht (around $8,400) per offering in asset-backed ICOs. This modification is projected to expand the market for a wider variety of investors and foster the development of the country's digital asset market.

Rules for Custodial Wallet Providers

The updated SEC guidelines also necessitate the creation of dedicated entities for custodial wallet management. However, these providers must be subsidiaries of publicly listed companies with proven experience in secure securities storage.

Monitoring Digital Asset Businesses

The revised regulations advocate for increased SEC participation in supervising the expansion of businesses in the digital asset sector. Companies planning to expand must first obtain approval from the SEC, ensuring that their growth strategies comply with regulatory standards.

As reported by the Bangkok Post, Thailand's SEC has decided against allowing spot bitcoin exchange-traded funds (ETFs), mirroring South Korea's stance. An official from the South Korean Financial Services Commission communicated that the government consistently upholds the principle of barring financial institutions from investing in virtual assets in order to stabilize the financial market and safeguard investors. This cautionary stance emerged after the market was drastically affected by the failure of Luna and TerraUSD, cryptocurrencies by Do Kwon, in Korea.

Binance's Influence on Thailand's Crypto Growth

The mid-January launch of Binance Thailand may further enhance the country's crypto growth. Binance TH enables digital asset exchanges with Thai baht trading pairs, works in collaboration with local banks, and partners with Binance Kazakhstan to provide brokerage services, all under the supervision of Thailand's SEC.

Edited by Jonathan Stoker